FunkFlow partnership with Q-commerce dark store delivery business brings in a billion benefits a year

FunkFlow, the only end-to-end Q-commerce SaaS solution, took a chain of convenience stores serving local communities and transformed it into the leading dark store network in its country, pulling in an annual turnover of $1 billion.

Over the last few years, Q-commerce has exploded in popularity.

Consumers have discovered that they don’t want to wait for delivery and will go to the grocers who will deliver what they want, when they want it.

Many online grocery apps looking to capture this market have jumped on the Q-commerce bandwagon, but the industry presents a new or scaling brand with obstacles: 

●      High operational costs - analogue operations have profit margins as low as 0.4% 

●      Eye-watering last-mile delivery costs swallowing up 53% of shipping expenditure

●      High customer expectations with low customer loyalty which is the greatest obstacle to revenue goals for 61% of D2C companies

A local chain of convenience stores that partnered with FunkFlow was no exception.

They were an early adopter of digital grocery delivery and by 2018 enjoyed a level of success with localised delivery to housing developments and offices. And spotting the Q-commerce model’s potential for growth, the company wanted to expand their reach and become a market leader in the industry. 

At the same time, Q-commerce success on a large scale would demand a new approach. Where could this company turn to to plan for and prepare everything necessary?

FunkFlow had discovered the path to success in Q-commerce by creating an end-to-end AI software solution that made businesses much more profitable.

Since its beginning as one of the earliest Q-commerce startups, FunkFlow developed a tested set of tools combining 1,000 years of code processing, 1,000,000 daily orders, and the expertise of 150 engineers, product managers and analysts. It was this expertise that brought profits to its partners.

This grocery chain decided to bring on FunkFlow’s end-to-end solutions to help it scale to a full Q-commerce model with a much larger geographical footprint.

So an assessment and plan were put into action to ensure the radical change needed to ensure both fast delivery and precise matrix management at the shop level.

The business needed the multi-level automated digital approach built into FunkFlow’s solution to ensure their company expanded their Q-commerce outreach and their customers got the best experience.

Dark store logistics and last mile delivery management would be powered with real-time data that provided management with the information needed to optimise operations.

This would create agility, reduce waste, and offer the best assortment at the best prices at any given time. It would also optimise company’s last-mile delivery which cuts down the biggest cost in a Q-commerce business.

The grocery chain had already developed a name for itself locally, and wanted to ensure that its brand didn’t get lost in the shuffle as it scaled.

FunkFlow knew that personalised product offer had replaced location as the primary brand differentiator, which required customer data be used in an individualised way.

There was no more room for the traditional way of burning marketing budgets and offering random discounts to customers to buy them back from competition.

Data driven individual customer knowledge, real-time personalised product assortment and pricing offers, and real-time in-app content marketing and rewards programs would transform the company’s UX experience and create loyalty.

One of the business’ priorities was streamlined operations and management. FunkFlow’s solution automated stock management, price management, and procurement.

It coordinated dark store operations placed in the best locations. It automated logistics which cut waste and freed managers from the constant damage control that comes with human error. It streamlined hiring, personnel training and scheduling, which enabled the company to operate with efficiency. 

The strategy this partnership developed brought extraordinary results:

●      15 minute grocery delivery time

●      Operating in 49 cities

●      Over 1,000 dark stores

●      $1 billion turnover annually

●      28.5 million monthly orders

●      All dark stores older than 12 months are profitable

●      20% of revenue comes from D2C products

●      42% customer retention after first order

The dark store delivery business of this grocery chain met its goals of full Q-commerce scalability, capturing the market, and differentiating itself as a leading Q-commerce brand.

The Q-commerce industry will be worth $450 billion by 2025, which means grocers have an extraordinary opportunity to grab a piece of an enormous pie.

With the right partner and solution to negotiate Q-commerce challenges, a brand can enjoy a solid, real-time, data-driven foundation on which it can build a profitable operation with continued growth in the future, just like this grocery chain.

To find out more about how your business can benefit from automation and last-mile optimisation, forecasting, and brand loyalty, book a no strings attached free demo and see how FunkFlow’s solutions will work for you. It’s your future - let’s make it a solid, profitable, stress-free future together. 

About FunkFlow

FunkFlow is an end-to-end software solution for Q-commerce automation with its primary offices located in Tel Aviv, Israel.

The FunkFlow has team developed and tested a set of tools for Q-commerce business, combining personalised client experience, optimised supply chain management, complete fulfilment flow, comprehensive analytics and machine learning tools.

The firm has more than 150 engineers working on expanding the already feature rich platform even further.